Through its own primary research, Nok Nok has been aware that limited business data exists about the state of today’s system-level authentication processes and its relation to the business impact of authentication failures. As the first initiative of its kind to address this gap, the Ponemon Institute, working with Nok Nok, launched an industry survey of businesses with current digital transformation projects underway.

The key finding of this Ponemon Study is that there exists a gap between IT security and line of business managers in understanding the various risks and impacts facing their organizations from authentication failures. 

Learn The Costs Of Authentication

This is one of the major takeaways from a study called “The Costs of Authentication Failure and Negligence,” conducted last summer by the Ponemon Institute for Nok Nok. According to this research where more than 1,000 corporate participants were interviewed,  it’s not just a customer inconvenience that arises from authentication failures. Organizations are spending on average $3M annually on these failures and the maximum single loss ranges from $39M to $42M. 

These losses include costs associated with downtime and business disruptions while security teams resolved various issues, loss of customers and the lingering effects of poor brand perception. On a corporate scale, the severity of system-level failures grows enormously. It’s one thing if one customer can’t remember a password, but quite another thing if many can’t. Similarly, one person with a seized account or data held for ransom is bad, but an entire organization is catastrophic. The most common reason for these breaches is authentication failures, such as clients taking their business elsewhere due to being unable to remember password guidance or simply being unwilling to comply and going to an organization that offers more convenient but less secure protocols.

This masterclass is hosted by Nok Nok and presented by various experts in the industry, including:

Larry Ponemon, Founder & Chair Ponemon Institute

Phil Dunkelberger, President & CEO, Nok Nok Labs

Jim Delli Santi, VP Marketing & Strategic Initiatives, Nok Nok Labs

Close to half of those surveyed agreed that authentication failures represent a significant security challenge for their companies, and preventing these failures is difficult because today’s MFA solutions negatively impact user experience. And sadly, more than 60% of the respondents detect more than ten monthly authentication failures, with an average downtime experienced by the respondents with these failures is about six hours a month. 

There are several reasons for authentication failures, according to the survey respondents. 

First, criminals using stolen credentials are hard to identify and distinguish from actual employees. Only 13% of the respondents said that it was either easy or not difficult to find the miscreants. About a third of the respondents say their companies have good visibility into credential theft attacks. The survey considered thefts of the user’s actual password rather than random guesses, using that account to make fraudulent purchases or other transactions, and steal confidential data. 

Second, only 19% feel that they have a high level of control over their authentication processes. Next, a total of 33% think that more than half of these failures remain undetected, and two-thirds claimed that the frequency (and 55% for the severity) of these failures has increased in the past year. 

Sign up for the masterclass to gain even more valuable insights about the costs of authentication failures. If you’re interested in learning about the FIDO protocol and moving to a password-free system, read here to learn more.

Apple, the ever-popular alternative to PC-based systems, has announced a slew of new features for its latest operating system update, macOS Ventura. The newest upgrade expands the convenience and functionality of Mac computers for users and introduces many more ways to secure data and devices with passwordless authentication.

Multi-Task Management

For users that need to hop back and forth between different windows on different applications and software, “Stage Manager” is one of the tweaks that can help users to stay focused and on track. Now the primary software being used is displayed as a centralized window, but others that are also “in play” at the moment appear as secondary windows on the side for easier access.

Mail has also been overhauled, with a big upgrade to organization and search features. Email contacts, mail itself, or even specific attached documents or photos can be easily retrieved now. Users can even set reminders to reply to or revisit certain emails within a specified period.

Device Interconnectivity

The new OS is also specifically designed to recognize the presence of an iPhone, even wirelessly. “Camera Continuity” is a new feature that allows macOS Ventura to use an iPhone as a web camera and can connect wirelessly to these devices for use. Users can mount their iPhones on their computer or continue to go handheld as they prefer, with smart features that can dim light or accentuate facial features.

Cybersecurity With Passwordless Authentication

Perhaps most importantly, macOS Ventura has new security features that make device usage safer than ever. Safari browser users can now enjoy a passwordless authentication feature called “passkeys.” Passkeys are digital keys that remain local to a specific device. These passkeys can only be unlocked through different passwordless authentication features based on user availability or preference.

Apple already has different forms of passwordless authentication for users to employ based on biometrics. So whether it is Touch ID or Face ID, users don’t have to worry about memorizing a long, difficult string of random alphanumerics. iCloud Keychain allows this same security to sync across devices like a Mac, iPhone, iPad, or Apple TV, with end-to-end encryption. This security even extends to other non-Apple websites, apps, or even non-Apple devices using an iPhone. 

These steps bring Apple users one step closer to an even safer digital experience that strongly repels attempts at identity theft without requiring inconvenient steps or measures to be taken. If you’re interested in using the FIDO protocol and moving to a passwordless authentication system, read here to learn more.

Biometrics is a form of password-free authentication that, instead of relying on typing out a memorized word or phrase, uses unique personal characteristics to confirm identities, such as the face, the voice, or even a fingerprint such as a thumb. Biometrics have slowly integrated into financial transactions, and a new study indicates that this trend is set to grow explosively.

Biometric Banking

According to Juniper Research, financial transactions through biometric authentications are set to exceed one trillion dollars by 2027. When it comes to remote payments, especially through mobile devices, PIN numbers and passwords are still dominant; with biometrics slowly integrating into mobile devices like smartphones and tablets, the current transaction amount is estimated to be approximately $332 billion.

This means that if the Juniper Research estimates are correct, remote payments through the use of biometrics are expected to rise by about 365% within the next five years.

Growth By Necessity

There are several reasons that this growth in biometrics is occurring. The chief driver is convenience. Biometrics is fast and easy. It doesn’t require a person to memorize a long string of random alphanumeric characters just to have a “strong” password. That ease is being capitalized on by large technology companies, such as Apple, that incorporate biometrics into financial software such as Apple Pay, making it an easily accessible, easy-to-use payment alternative for Apple users.

The other factor is government intervention. The European Union, for example, has a “Second Payment Services Directive” (PSD2) that is putting a renewed emphasis on cybersecurity. Strong Customer Authentication, or SCA, is a part of this directive, and that also means multi-factor authentication that doesn’t rely solely on a password for access. Biometrics is an important component in meeting these standards.

Another factor contributing to the wider implementation of biometrics is FIDO, or the Fast Identity Online alliance. Formed in 2013, this alliance of industry experts is committed to reducing the reliance on passwords and promoting a standardized protocol.

FIDO recently got a shot in the arm with an official announcement from major tech companies Microsoft, Apple, and Google, all announcing broad support for FIDO standards, with an intention to make them more widespread in technology. That initiative is going into deployment as quickly as next year and will continue to become more widespread.

Biometrics is a fast, secure, and more convenient way to authenticate without using passwords. If you’re interested in using the FIDO protocol and moving to a passwordless authentication system, read here to learn more.